Problem: The manager at Tiffany's Furniture Store is trying to figure out how much to charge for a bed frame that just arrived. If the bed frame was bought at a wholesale price of $106.00 and Tiffany's Furniture Store marks up all furniture by 45%, at what price should the manager sell the bed frame?
Solution: In order to find the retail price, we must first find the amount of markup. Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. With this knowledge, we can figure out the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $45\%$ is equivalent to $\frac{45}{100}$ which is also equal to $45 \div 100$ $45 \div 100 = 0.45$ Now you have all the information you need to find the amount of markup! $0.45$ $\times$ $$106.00$ $=$ $$47.70$ Since the markup rate is a percentage of the wholesale price that is added to get the retail price, we can find the retail price with the following equation: amount of markup $+$ wholesale price $=$ retail price $$47.70$ $+$ $$106.00$ $=$ $$153.70$ The retail price of the bed frame should be $$153.70$.